The government's decision to take over the debt restructuring of the Whoosh Jakarta-Bandung high-speed railway marks the end of one of Indonesia's largest business-to-business (B2B) infrastructure experiments. A decade after promising the project would not rely on the state budget, the government has been forced to step in. The rescue raises a broader question: If the existing line has yet to prove financially sustainable, why extend it to Surabaya?

The decision to move the consortium's stake to the fiscal authorities is effectively an admission that the domestic SOE structure has reached its limits.

The government's decision to take over the debt restructuring of the Whoosh Jakarta-Bandung high-speed railway marks the end of one of Indonesia's largest business-to-business…